Thursday, September 29, 2016

Why the rich promise of Asia begins in Hong Kong

Photo Credit: commons.wikimedia.org

Hong Kong and the United Kingdom have long enjoyed rewarding relations. That is certainly true of trade and commercial ties. The UK was Hong Kong’s second-largest trading partner in the EU and 12th-largest trading partner in the world last year, with trade exceeding £8.6bn. It is also the gateway to the Mainland of China. Last year, it was estimated that more than 8pc of trade between the UK and the Mainland, worth £4.8bn, went through Hong Kong, underlining its value to UK business.
Hong Kong’s intermediary role is evident in the more than 600 UK companies based there. They include some of the world’s leading corporations, in a wide variety of sectors, along with an increasing number of start-ups.
"Hong Kong, the fast-beating business heart of Asia, is where the world wants to be." Meanwhile, deepening economic integration with the Mainland continues to create opportunity for Hong Kong and the companies that work with it. The Outline of China’s 13th Five-Year Plan, which was published in March, supports the enhancement of Hong Kong’s strengths as an international trade, transportation and financial centre. And the Mainland’s far-reaching Belt and Road Initiative, which is designed to boost connectivity among a total of 65 countries on three continents, offers unparalleled opportunities for Hong Kong business and finance. Beyond the Mainland, Hong Kong continues to expand its reach. It is now finalising a free trade agreement with the Association of Southeast Asian Nations (ASEAN), Hong Kong’s second-largest trading partner. The agreement, which is expected to be concluded by the end of the year, will boost Hong Kong’s trade and investment ties with ASEAN, one of the world’s largest trading blocs. British companies look to Hong Kong in building markets in the Mainland, and throughout Asia, for good reason. Like the rest of the business world, they trust Hong Kong. "Last year, it was estimated that more than 8pc of trade between the UK and the Mainland went through Hong Kong." In February, the Washington-based Heritage Foundation named Hong Kong as the world’s freest economy, for the 22nd year in a row. It helps that Hong Kong’s common-law legal system was modelled on Britain’s own. Hong Kong’s free-market economy invites a free flow of people, information and capital. That in turn boosts the city’s standing as a major international commercial hub and investment capital. Last year, Hong Kong was the world’s eighth-largest trading entity in goods. It ranked second in the world in foreign direct investment inflow. In short, Hong Kong, the fast-beating business heart of Asia, is where the world wants to be. For information on Hong Kong arts and culture, visit brandhk.gov.hk The Telegraph